You want to purchase office space or a nice tenement
in an upcoming area but you have a 320 credit score. This article will show you
how to get a commercial loan even if
you have a bad credit score.
Let’s face it debt and Americans go hand in hand. Most
of us are trying to come out from under some form of debt. In a 2015 study, the
U.S. Census Bureau concluded at least 38.1% of households in America have some
form of debt. In the last quarter of 2015, the dollar amount of credit card
debt in the U.S. was around $733 billion. In regards to mortgage debt, the
amount was a staggering $8.25 trillion.
Needless to say, a few of us have a little debt in our
name. But is that supposed to stop you from being able to by that nice home for
your New England bed and breakfast? No. Everyone should be able to be an
entrepreneur in this day and age. You can still get a commercial loan with bad credit there are just a few more things
that you have to go through before you get the loan that you need.
Before you apply for a commercial loan plan ahead
First and foremost, you want to make sure you have a
clear and concise business plan. You should be able to walk into your lender’s
office and be able to give them the pros of giving you a commercial loan for your business. You want to make sure you give your
lender a clear and in-depth plan of action. Show them the goals you want to
accomplish with this business. Provide them with the tactics you will use to
bring customers or tenants to the space you want to buy. Make sure you,
yourself, know what you want to do with your business.
You could also make contact with your creditors.
Trying to make payments on your debt can have a good impact on your credit
score. As well all know this will not happen overnight. But making an attempt
to rectify the situation looks really good in the eyes your lender. You may
have to pay higher rates or addition fees, but with your commercial loan, you are one step closer to your property.
Where can I go to get a commercial loan if I have all of that?
Do not fret even though you may have bad credit you
still have come options that you have at your disposal. There are some banks
that will work with you however your options are kind of slim. An option that a
lot of investors with bad credit look into is borrowing from hard money lenders.
Most of the time hard money lenders do not worry about your credit score as
long as you have a form of collateral. If for some reason you cannot pay your
loan back, then the collateral used will be auctioned off for profit. The only
drawback that you will most likely have is the higher interest rate that you
will have to pay.
Here at Level 4 Funding we specialize in commercial loans for bad credit investors. You may end up paying a bit more interest but in the end it will be worth it to have the loan that you need to grow your business. Hopefully, this gives you the confidence to go and get your commercial loan for your news business.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.